- Advertisement -
- Advertisement -

Related

One Big Winner Lifts Accendo Into the Top Ten

Latest Report

- Advertisement -

When your portfolio holds six names, one big winner can move the needle in a major way. For Accendo Capital, September proved just that. A soaring share price in Finnish cybersecurity firm SSH Communications Security more than offset declines elsewhere, lifting the activist fund 22.6 percent for the month and pushing its year-to-date gain to 22 percent, enough to rank among the top ten performers in the Nordic hedge fund universe this year.

The catalyst came on July 1, when SSH Communications Security announced a strategic partnership with Leonardo S.p.A., an Italian aerospace and defense group with a €32 billion market value. As part of the deal, Leonardo committed to invest €20 million in SSH through a directed share issue at €1.50 per share, a 49.6 percent premium to the prevailing market price at the time. Investor excitement quickly followed. SSH’s share price more than doubled to €4.88 during the month of September, reflecting growing anticipation around the transformative partnership.

“September delivered strong performance, driven by increased investor and media attention to SSH in anticipation of the Leonardo partnership,” said Mark H. Shay, Accendo’s Senior Partner based in Stockholm. “Leonardo’s executive management visited Finland and provided inspiring comments to the media on the planned co-operation,” he added. “We anticipate soon Finnish regulatory approval of the share issue to Leonardo, which will make them a 24.6 percent owner, while Accendo will hold 20.9 percent, down from 27.7 percent today.”

“September delivered strong performance, driven by increased investor and media attention to SSH in anticipation of the Leonardo partnership.”

Mark H. Shay, Senior Partner at Accendo Capital.

Accendo’s position in Remedy Entertainment, the Finnish video game developer, gained nine percent in September. The rest of the portfolio, however, moved in the opposite direction. Hexatronic, now the fund’s third-largest holding, fell 17 percent after issuing a cautious outlook for its Fiber Solutions segment, where it is scaling back costs and capacity. The company expects stronger growth ahead in its more differentiated Data Center and Harsh Environment segments, supported by continued mergers and acquisitions (M&A) activity.

After facing headwinds in recent years, largely due to share price weakness in Hexatronic, Accendo’s concentrated portfolio naturally produces both standout months and weaker ones. What ultimately matters, however, is Accendo’s long-term track record and the team’s ongoing work to create lasting shareholder value across its holdings through activism and strategic influence. Accendo Capital marks 18 years of activist investing in the Nordics this coming spring and has averaged 10 percent net annual returns since inception.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Hedge Funds Pay Off for the State Pension Fund of Finland

Finland’s largest institutional investors remain committed allocators to hedge funds, yet the State Pension Fund of Finland’s (VER) hedge fund allocation stood out as...

Carl Berg to Lead Niam’s Capital Formation Efforts in Sweden

Private markets firm Niam Group has strengthened its Capital Formation and Investor Relations team with the appointment of Carl Berg as Capital Formation Director...

Statistical Outlier Year for HCP Black

When HedgeNordic spoke with Tommi Kemppainen in early 2019, the CEO of Helsinki Capital Partners outlined a defensive positioning for the multi-strategy fund HCP...

Nordea Adds Systematic Fixed Income Expertise

Nordea Asset Management (NAM) has strengthened its data-driven investment capabilities with the addition of two London-based professionals, Lucette Yvernault and Marton Huebler, marking the...

From Short-Term Opportunity to Long-Term Outperformance

Borea Utbytte, a banking sector-focused equity fund under Norwegian boutique Borea Asset Management, celebrated its five-year anniversary at the turn of September to October....

Record Month for Tidan in Priced-to-Perfection Credit Market

Tidan Fund, a Stockholm-based hedge fund specialising in opportunities across corporate capital structures, marked its four-year anniversary in September with its strongest month on...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.